CPRX - Is Catalyst Pharmaceuticals Stock Safe to Own?
Catalyst Pharmaceuticals (NASDAQ: CPRX), a small-cap rare disease specialist, reported its third-quarter earnings after the bell on Tuesday. Yesterday, the drugmaker's shares closed down by 7.5% on over three times the average daily volume.
The stock dipped in response to two key developments:
Although Catalyst's management didn't dwell on the underlying reason for these lighter-than-expected revenue figures, all signs point toward the off-label competition emanating from Jacobus Pharma's Ruzurgi. Underscoring this point, management noted that about 30 patients have now switched from Firdapse to Ruzurgi. That works out to a loss of around $11.3 million in annual revenue.